To buy stocks, open and fund a brokerage account, then find the stock by its ticker symbol. Choose how many shares, or how many dollars, you want to buy. Pick an order type, such as a market order or a limit order, and how long it stays open, then review the order and submit it.
Most of those steps are simple logistics. The order type is different, because it shapes the price you pay and decides whether your order executes at all. A market order trades promptly at the price available, while a limit order sets the most you will pay and may never execute.
A real example from October 2026 shows, in exact dollars, what each of those two order types would have done when one stock's price moved overnight.
Key Takeaways
- A first trade takes six steps: fund an account, find the ticker, choose shares or dollars, pick an order type, set how long it lasts, then review and submit.
- A market order generally executes right away, but its price is not guaranteed. A limit order controls the price, but it may never execute.
- Where a broker offers fractional shares, a $50 order in a stock priced at $400 buys 0.125 shares.
- Regular trading hours on the NYSE and Nasdaq run from 9:30 a.m. to 4:00 p.m. Eastern Time. Extended-hours sessions usually have less trading and wider spreads.
- Most US stock trades settle one business day after the trade date (T+1). A single stock can lose much or all of its value.
How to Buy Stocks in Six Steps
Order screens differ from broker to broker, but a first trade comes down to the same six decisions:
- Open and fund a brokerage account.
- Find the stock by its ticker symbol.
- Choose whole shares or a dollar amount.
- Choose an order type.
- Set the time in force and check trading hours.
- Review and submit the order.
The first three steps decide what you buy and how much. Steps 4 and 5 decide how the order behaves once it reaches the market, which is where the price you pay is determined.
Step 1: Open and Fund a Brokerage Account
A brokerage account is an account with a broker, a firm that buys and sells investments on your behalf. You place orders through the account, and it holds your cash and shares afterward. Opening one involves an application, identity checks and a choice of account type, all covered in the guide on how to open a brokerage account.
For the trade itself, one detail matters most: the money has to be in the account and available to use before you can buy. A transfer from a bank account can take a few business days to become available. Starting a transfer is not the same as having the funds ready, so it helps to check the account's available cash before you place an order.
Step 2: Find the Stock by Its Ticker Symbol
A share is a unit of ownership in a company, and stock is the general name for those shares. Every listed stock has a ticker symbol, a short code of letters that identifies it on trading screens. UnitedHealth Group (UNH), for example, uses the three letters in parentheses as its ticker symbol.
A company name and its ticker are different things, and mixing them up is an easy error to make. Two companies can have similar names, and one company can have more than one class of shares, each with its own ticker.
The safeguard is a quick check on the order screen before you submit. Confirm three things: the ticker symbol, the full company name and the exchange where the stock trades, such as the New York Stock Exchange (NYSE) or Nasdaq. If any of the three does not match what you expected, search again before going further. That check is the simplest part of learning how to buy shares, and it prevents an avoidable mistake.
Step 3: Choose Whole Shares or a Dollar Amount
Next, decide how much to buy. An order can name a number of whole shares, or a dollar amount. A whole-share order costs roughly the number of shares multiplied by the price per share, plus any fees. A dollar-amount order works the other way around: you choose the money to spend, and the broker works out how much stock it buys.
How Fractional Shares Work
A fractional share is a piece of a single share. The arithmetic is plain division: the dollar amount divided by the price per share.
A $50 order in a stock priced at $400 buys 0.125 shares, because $50 divided by $400 equals 0.125. From then on, the value of that fraction rises or falls by the same percentage as the share price.
Where Fractional Shares Have Limits
Not every broker offers fractional shares, and some offer them only for certain stocks. Some brokers also allow only market orders for fractional trades, which matters once you reach Step 4.
Moving them is limited too. The SEC says investors generally cannot transfer fractional shares to another brokerage firm, so moving an account may mean selling the fractions first. FINRA adds that such a sale can bring taxes and fees.
Step 4: Choose an Order Type
An order type tells the broker how to handle your order once it reaches the market. It is the step that most directly decides the price you pay. Two prices need defining first.
Bid Price, Ask Price and the Spread
An exchange is a marketplace where buyers and sellers of shares meet, and the NYSE and Nasdaq are two well-known examples in the US. At any moment, a stock has a bid price, the highest price a buyer is currently offering, and an ask price, the lowest price a seller is currently willing to accept. Exchanges match those buy and sell orders continuously, a process covered step by step in how the stock market works.
The gap between the bid and the ask is called the bid-ask spread. When you buy, you generally pay around the ask price. When you sell, you generally receive around the bid. The SEC makes a related point about the price on a quote screen:
"It is important for investors to remember that the last-traded price is not necessarily the price at which a market order will be executed.
— U.S. Securities and Exchange Commission (Investor.gov, Types of Orders)
Market Orders
A market order is an order to buy or sell right away at the price available in the market. During regular trading hours, it generally executes almost immediately, at or near the current ask price for a buy. What it does not guarantee is the price, which can change between the moment you submit and the moment the order fills.
Limit Orders
A limit order sets the highest price you are willing to pay on a buy, called the limit price. It can execute only at the limit price or lower. That gives you control over price, but it gives up certainty of execution. If the stock never trades at your limit, the order does not execute.
Reaching the limit price is not the same as a fill. Once the price gets there, the order becomes eligible to execute, but it may fill only partly, or not at all if the price moves back above the limit before the order can be filled.
Stop Orders and Stop-Limit Orders
A stop order waits until the stock trades at a price you choose, called the stop price, and then becomes a market order. On a buy, the stop price sits above the current price; on a sell, it sits below. Once triggered, it behaves like any market order, so in a fast-moving market it can execute well away from the stop price.
A stop-limit order uses two prices: a stop price that triggers it and a limit price that caps it. At the stop price it becomes a limit order, so it will not execute at a price worse than the limit. Like any limit order, it may not execute at all if the price moves past the limit.
Order types at a glance
| Order type | What you set | When it can execute | The price you get | Main risk |
|---|---|---|---|---|
| Market order | Only the number of shares or a dollar amount | Generally right away during regular trading hours | At or near the current ask price for a buy order, not guaranteed | The price can differ from the last price you saw, especially in a fast-moving market |
| Limit order | The highest price you are willing to pay | Only when the stock trades at your limit price or lower | Your limit price or better | The order may execute only partly, or never, if the price does not come to your limit |
| Stop order | A stop price that triggers the order | Once the stock trades at the stop price, when it becomes a market order | The next available market price, not the stop price | In a fast market, the execution price can be well away from the stop price |
| Stop-limit order | A stop price and a limit price | Once the stop price is reached, when it becomes a limit order | The limit price or better | The order may not execute if the price moves past the limit |
Market Order vs Limit Order: Ten Shares, One Night
Prices can move between one day's close and the next day's open, especially when news arrives outside trading hours, such as a company's quarterly results. That overnight move is where the difference between the two main order types stops being abstract.
Here is what happened to UnitedHealth Group (UNH) shares on October 13, 2026, the day the company reported quarterly results. The stock closed at $378.52 on October 12. On October 13 it opened at $397.625, which is 5.05% above the previous close, and it closed at $377.76, which is 0.20% below it.
Ten shares, one night, two order types
| Moment | Price per share | Cost of 10 shares | Change vs Oct 12 close |
|---|---|---|---|
| Close, October 12, 2026 | $378.52 | $3,785.20 | Starting point |
| Open, October 13, 2026 | $397.625 | $3,976.25 | +5.05% |
| Close, October 13, 2026 | $377.76 | $3,777.60 | −0.20% |
A Market Order Entered the Evening Before
Suppose a market order for 10 shares was entered on the evening of October 12, after the close. It would have executed at or near the opening price the next morning. At the opening price of $397.625 a share, 10 shares would have cost about $3,976.25, roughly $191.05 more than the $3,785.20 that the previous close implied.
By the close on October 13, the same 10 shares were worth $3,777.60. That is $198.65 below their value at the opening price, because 10 × ($397.625 − $377.76) = $198.65. The market order would have executed promptly, which is all a market order promises.
A Limit Order at $380 Entered the Same Evening
Now suppose a limit order to buy 10 shares at $380.00 was entered on the same evening. It could not execute at the open, because the opening price of $397.625 was above the limit. Later in that session, the price traded below $380, so the order became eligible to execute. If it filled, the 10 shares would have cost no more than $3,800.00, because a buy limit order executes only at the limit price or lower.
Eligible is not the same as filled, though. A limit order is not guaranteed to fill even when the price reaches the limit, for example if the price moves back above the limit before the order is filled. Had the price stayed above $380 all day, the limit order would not have executed at all.
Certainty of Execution vs Control Over Price
The two orders show one trade-off from opposite sides. The market order gained certainty of execution and gave up control over price. The limit order kept control over price and gave up certainty of execution. Past price moves do not predict future ones, and the next overnight move in any stock could be up, down or close to nothing.
Step 5: Set the Time in Force and Check Trading Hours
Time in force is the instruction that says how long an order stays open if it does not execute right away. It matters most for limit, stop and stop-limit orders, because each of those can wait for a price that may never come.
Day Orders and Good-til-Canceled Orders
A day order is open only for the current day's regular trading session. If it has not executed by the close, it expires, and it does not carry into after-hours trading or the next trading day. The SEC notes that an order with no expiration set is treated as a day order.
A good-til-canceled order, often shortened to GTC, stays open until it executes or you cancel it. Brokers set their own limit on how long a GTC order can stay open, and that limit varies from firm to firm.
Regular Trading Hours
Regular trading hours on US exchanges such as the NYSE and Nasdaq run from 9:30 a.m. to 4:00 p.m. Eastern Time on trading days. A few days around holidays close early, and the exchanges list those dates on their published holiday calendars.
Extended-Hours Trading and Its Risks
Extended-hours trading means trading before the regular open or after the regular close. Some brokers offer it, and the sessions they support vary from firm to firm.
The SEC and FINRA describe the same set of risks. There are usually fewer buyers and sellers, so some stocks may not trade at all. Bid-ask spreads tend to be wider, and prices can swing more sharply than during regular hours. An order may fill only partly, or not at all. Some brokers accept only limit orders in these sessions.
Step 6: Review and Submit the Order
Before an order goes out, the order screen usually shows a summary. Read each line against what you intended: the ticker symbol and full company name, the exchange, buy rather than sell, the number of shares or the dollar amount, the order type, any limit or stop price, and the time in force. For a market order, any estimated total is an estimate, not a promise.
Execution and the Trade Confirmation
Execution is the moment your order is matched and the trade happens. During regular hours, a market order for a widely traded stock generally executes almost immediately. The SEC notes, though, that its regulations do not require a trade to be executed within a set period of time. A limit order may take longer, or may not execute at all.
After the order executes, the broker provides a trade confirmation, a record showing the number of shares, the price per share and any fees charged.
Trade Date and Settlement Date
The trade date is the day your order executes. Settlement is the final step, when the cash and the shares officially change hands, and the settlement date is the day that happens.
In the US, the standard settlement cycle for most stock trades is T+1, which means one business day after the trade date. The SEC moved the standard from T+2 to T+1 on May 28, 2024. A trade executed on a Monday generally settles on Tuesday. The SEC also notes that buyers may need to pay one business day sooner than under the old cycle, one more reason the cash needs to be available before you buy.
Costs to Check Before Your First Trade
The price per share is not the only cost of a trade. The broker's fee schedule, the document that lists its charges, is worth reading for three kinds of cost.
- Commissions, if any. A commission is a fee for placing a trade. Whether one applies, and how much, depends on the broker.
- The bid-ask spread. The spread is a cost even though it never appears as a line on a bill. Buying at the ask and later selling at the bid means giving up the gap between the two.
- Account and regulatory fees. Some accounts carry account-level fees, and some trades carry regulatory fees that a broker may pass on. The fee schedule lists which apply and how much they are.
The Risk of Owning a Single Stock
A single stock can lose much or all of its value. Owning shares of one company concentrates your risk in that one business. Funds that hold shares of many companies spread that risk across all of them.
The value of shares can fall as well as rise, and you can get back less than you invest, including losing the whole amount invested in one company. Past price moves, including those in the UnitedHealth Group (UNH) example above, do not predict future ones. Whether to buy any stock, and which one, is your own decision.
Frequently Asked Questions About Buying Stocks
What is the difference between a market order and a limit order?
A market order executes promptly at the price available, but that price is not guaranteed. A limit order sets the most you will pay and executes only at that price or lower, but it may never execute. A market order puts certainty of execution first, while a limit order puts control over price first.
Can I buy stocks with $100?
A dollar-amount order can buy part of a share when the broker offers fractional shares. The arithmetic is the dollar amount divided by the share price: $50 in a stock priced at $400 buys 0.125 shares, and $100 at the same price buys twice that fraction. Not every broker offers fractional shares, and some offer them only for certain stocks.
Can I buy stocks after hours?
Some brokers offer extended-hours trading before the regular open and after the regular close. These sessions usually have fewer buyers and sellers, wider bid-ask spreads and larger price swings, and an order may fill only partly or not at all. Some brokers accept only limit orders outside regular hours.
How long does it take to buy a stock?
Two clocks apply. Execution is generally almost immediate for a market order on a widely traded stock during regular hours, though no rule sets a maximum time. Settlement, when the cash and shares officially change hands, follows one business day after the trade date under the US T+1 standard.
Should I use a market order or a limit order?
It depends on which matters more to you on a given trade. A market order offers near-certain execution at a price not known in advance. A limit order offers a known worst price with no certainty of execution. In the ten-share example, the market order would have executed at or near $397.625, while the $380 limit order would have had to wait for the price to come down, with no certain fill. The choice comes down to your own priorities: certainty of execution, or control over price.